For N M Joshi Marg, the lower bid is from M/s Shapoorji & Pallonji, for the Naigaum project it's from M/s Larsen & Toubro, said Sambhaji Zende-Patil, vice-president of Mhada, the state's nodal agency for the redevelopment project. "Both bids are about 1%-2% more than our estimated cost. We'd invited global tenders. Only the two construction companies qualified as our tender conditions were very stringent," he said.

The projects are estimated to cost Rs 6,000 crore and will involve building 29,000 tenements. While Mhada will raise part funds, a loan will be taken from Housing and Urban Development Corporation.